A group of European telecom companies has issued a warning to the European Commission over proposed reforms that would ease regulatory obligations on dominant fixed network operators.
In an open letter released on Thursday, firms including Vodafone, Iliad and 1&1 cautioned that the proposals risk re-establishing monopolistic control in national broadband markets and undermining fair competition.
The letter, signed by a coalition of alternative operators active across the EU, described the Commission’s plans as a “step backwards” which would contravene the bloc’s established competition principles. The signatories argue that loosening access obligations for major incumbents would obstruct the continued rollout of fibre-optic broadband, particularly by disadvantaging smaller providers.
“If adopted, the measures would lead to a re-monopolisation of national markets,” the letter stated. “It would strengthen the position of legacy operators at the expense of competition, infrastructure investment and consumer choice.”
Current Obligations Under Scrutiny
The European Commission is reviewing regulatory rules that currently oblige dominant operators—often former state-run monopolies such as Deutsche Telekom in Germany—to provide other operators with wholesale access to their physical network infrastructure. This model, in place since liberalisation efforts began in the 1990s, is intended to support market competition by enabling new entrants to offer services without duplicating costly infrastructure.
Under the revised framework under consideration, national regulators could be granted greater discretion to lift or reduce such access obligations, particularly in areas where infrastructure-based competition is emerging or where fibre deployment is progressing.
Industry analysts suggest that the proposals reflect pressure from large incumbents who argue that the existing rules undermine their incentive to invest in next-generation networks. However, smaller operators maintain that these rules remain essential to ensuring market access and avoiding the concentration of power among legacy providers.
Fibre Expansion a Key Concern
The issue comes at a time of heightened focus on broadband deployment across the EU. Fibre-optic network expansion is seen as a critical component of the European Union’s Digital Decade targets, which aim to ensure gigabit connectivity for all citizens by 2030.
In the open letter, the signatories argue that deregulating incumbent operators would slow down fibre rollout, particularly in areas not deemed commercially attractive. They contend that the presence of strong market obligations has encouraged investment from multiple providers, driving both competition and coverage.
“The current regulatory framework has enabled real progress in fibre deployment,” the letter said. “Undermining this framework would favour a small number of dominant players, threatening the viability of alternative providers and distorting the market.”
National Context: German Legislative Push
The publication of the letter follows legislative developments in Germany, where the Bundestag earlier this month approved a law aimed at accelerating the deployment of fibre-optic and mobile networks. While the law seeks to remove administrative barriers and expedite infrastructure projects, smaller operators remain concerned about the regulatory balance between market openness and investment incentives for dominant players.
Deutsche Telekom, the main incumbent in Germany, has long called for reduced regulatory burdens in light of its investments in fibre and mobile infrastructure. Similar arguments have been made by large incumbents in other member states, who view the existing rules as disproportionately favouring smaller rivals without equivalent infrastructure commitments.
Regulatory Debate Continues
The European Commission has not yet published a formal legislative proposal but has launched consultations as part of a broader review of the regulatory framework for electronic communications. Officials argue that the goal is to encourage faster and broader network deployment while maintaining a competitive environment.
However, the divergence of views within the sector is clear. While incumbent operators call for more flexible regulation to support investment, smaller players insist that any dilution of access obligations would cement the market dominance of a few firms and hinder progress towards EU connectivity targets.
A Commission spokesperson declined to comment on the contents of the letter but confirmed that stakeholder input is being reviewed. The future direction of regulation will form part of the broader EU agenda on digital infrastructure and competition policy.
The letter’s signatories urged the Commission to maintain its commitment to a balanced regulatory environment that ensures fair competition, consumer protection and continued investment by all market participants.
